Petrol price drops to N935 per litre as IPMAN announces new agreement with Dangote Refinery
By Sabiu Abdullahi
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a significant reduction in the price of petrol, effective Monday.
According to IPMAN’s National President, Maigandi Garima, the new price of petrol will be N935 per litre, following a new agreement with the Dangote Petroleum Refinery.
“Dangote refinery has brought another new arrangement of loading and pricing by which marketers would pay a fixed ex-depot price of N899.50k,” Garima explained. “The refinery is running a programme whereby it wants the fuel consumption across the country to be at the same rate. We are expecting the new arrangement to kick-start on Monday. Previously, the loading price was N970 per litre, but from Monday, petrol prices will drop to N935.
“The reduction in price is attributed to the decreased ex-depot price for petrol at the Dangote refinery, as well as the standardized framework being established. IPMAN’s publicity officer noted that marketers are preparing to begin loading petrol at a lower cost, following the national oil company’s recent update to its pricing on the purchasing portal.Ukadike, the publicity officer, welcomed the reduced price, stating that it is a positive development in a deregulated sector.
“When there are multiple sources of petroleum products, there will be production and pricing competition. That interplay of pricing has come to the centre stage, and it is now to the advantage of the commuters who wish that this petroleum product will be sold at a lesser price.
“The competition between NNPCL and Dangote is expected to benefit Nigerians, as it will uncover the actual costs associated with producing PMS and the logistics expenses involved.
“The fight to control market share between NNPCL and Dangote is healthy for Nigerians because, at the end of the day, we would know the actual cost of PMS production and the amount spent on logistics,” Ukadike said.
Marketers are expected to pick up more volumes with the reduced price, which will lead to increased consumption. The nearness to retail outlets will also play a crucial role in determining which refinery marketers will source their products from.
